DAILY TECHNICAL ANALYSIS FOR OCTOBER 21, 2022petar skakalov
Current level – 0.9769
The past session of the single European currency was mixed. Better U.S. jobless claims data at 12:30 GMT gave the dollar a boost and it edged higher and easily broke support at 0.9807. But the next news at 14:00 GMT was negative – existing home sales are decreasing and this gave the euro the strength to recover its lost positions. The level turned into resistance at 0.9807 was overcome by the bulls, but their strength was not sufficient to attack the next target at 0.9853. The bears gradually gained the upper hand and steered the course back south, but their second target support at 0.9734 was not reached either. As a result of this, we are likely to witness range-bound trading in the medium term.
Current level – 150.21
For now, there are no indications of stopping the upward trend in the currency pair. The dominance of the bulls is total, it looks like we don’t see any bears in the market. A correction can be seen only if the Bank of Japan intervenes on the forex market.
Current level – 1.1201
The pound is consolidating for now, with the resistance at 1.1348 holding back the bulls, but that doesn’t mean the bears have any significant advantage. They need to break through at least three important resistances: 1.1222, 1.1052 and 1.0887 to be considered successful. This does not seem easily achievable so far, and probably no one will prevail, especially given the difficult political landscape after the resignation of the British PM Liz Truss.
Gold price resumes the decline
Gold price bounced downwards clearly after testing the bearish channel’s resistance in the upcoming sessions, to keep the bearish trend scenario active for the upcoming period, waiting to visit 1615.00 as a next main target.
The recent trades are confined within bearish pennant pattern that supports the chances of surpassing the mentioned target to head towards 1600.00 barrier direct, thus, we will continue to suggest the bearish trend on the intraday basis conditioned by the price stability below 1640.00.
The expected trading range for today is between 1600.00 support and 1640.00 resistance.
The expected trend for today: Bearish
Source: Technical analysis